The Securities and Exchange Board of India (Sebi) has given its in-principle approval to settle the unfair market access case involving the National Stock Exchange (NSE).  

"That is in the process of our different committees. But, in principle, we agree to the settlement," said Sebi Chairman, Tuhin Kanta Pandey, speaking to reporters on the sidelines of an event in Mumbai on Thursday.  

NSE listing saga  

NSE, India’s largest bourse, which is also the world’s most active derivatives exchange, has been seeking a listing since 2016, but the process has been delayed due to regulatory investigations into alleged lapses in providing fair and equal market access to traders through its co-location facilities. 

F&O tightening under review, no immediate rollback 

On the derivatives front, Pandey maintained a cautious tone, reiterating that Sebi will not rush into easing futures and options (F&O) norms despite pressure from brokers and falling participation levels. 

He said Sebi is currently analysing the impact of regulatory measures introduced in October 2024 and May 2025, which were aimed at curbing excessive retail speculation and limiting investor losses. Any further steps— whether tightening or relaxation — will be considered only after data-backed analysis and, if required, placed for public consultation.  

The Sebi Chairman, however, declined to comment on broker requests to revisit index option expiries such as Bank Nifty, as well as concerns around a proposed 15% volume cap per broker in the derivatives segment, indicating that these issues remain under evaluation.  

Unlisted market, grey market outside Sebi's remit 

Addressing questions on the unlisted and so-called grey market, the Sebi chief made it clear that the markets regulator has no direct regulatory authority over unlisted share transactions, which fall under the purview of the Ministry of Corporate Affairs. 

“There is no such thing as a ‘grey market’ in regulatory terms,” he said, adding that trading in unlisted shares has existed for decades and is governed by company law. Sebi regulates only listed securities traded through exchanges and demat accounts.  

He added that discussions are ongoing with the Ministry of Corporate Affairs (MCA) on the broader regulatory framework for unlisted markets and their boundaries.